In October, 2011, TEC Inc. ("TEC"), a 330-person environmental and infrastructure consulting firm, announced their sale to Cardno, a professional services firm founded in 1945 with headquarters inBrisbane, Australia. With this transaction, TEC became a key part of an international industry leader with a combined resource base of more than 4,600 staff working on projects in more than 85 countries.
Richard Heiderstadt, President of TEC, said the merger marks an important step in the next chapter of growth for TEC.
"Our motivation to seek a partnership with an international firm like Cardno was three-fold. First to provide our clients with a wider range of services and locations; second to provide our talented staff with additional opportunities for career development; and third to accelerate the growth of TEC across the U.S. and overseas," Mr. Heiderstadt said.
"TEC is a growth-oriented, profitable business and by combining with Cardno we will be able to expand organically and look to complement our existing discipline offering with targeted acquisitions," said Mr. Heiderstadt.
TEC brings to Cardno specialized expertise in environmental management, asset management and infrastructure management. Headquartered in Charlottesville, VA, TEC has 15 mainland U.S. offices and 5 off-shore offices including Hawaii, Guam, Germany,Belgium, and Italy.
Major clients of TEC include U.S. Government clients such as the Department of Defense, Department of Homeland Security, National Park Service, and the General Services Administration.
Cardno's leadership in social infrastructure work was a compelling reason for TEC to consider this relationship. Cardno provides opportunities for TEC staff to become part of a committed, global focus to help developing nations and countries adversely affected by natural disasters and conflict to build and implement social and physical infrastructure programs.
"The potential synergistic benefits from our combined firms are enormous for our staff, our clients and our financial performance," commented Heiderstadt.
Managing Director and CEO of Cardno, Mr. Andrew Buckley, said that the Cardno and TEC union follows the successful business model Cardno has implemented in other countries.
"TEC will now be a platform for the expansion of both Cardno and TEC throughout the Americas and Europe," said Mr. Buckley.
With the addition of TEC, Cardno's American operations now comprise 2,400 staff across 115 offices with branch offices in Canada, Ecuador,Peru, United Kingdom, Germany and Belgium. Cardno's other U.S. businesses include Cardno ENTRIX, Cardno ERI, Cardno WRG, Cardno TBE, Cardno Emerging Markets and XP Solutions.
President of Cardno USA, Michael Renshaw, said the merger with TEC will significantly expand Cardno's environmental capabilities and will provide access to U.S. government clients, an expanded geographic footprint in the U.S. and Europe and mutual opportunities to enhance service delivery to our clients.
"TEC's business culture and growth potential make it an ideal platform for further expansion of our combined businesses across North andSouth America in providing a wide range of environmental consulting services. With the addition of TEC, around 55 percent of Cardno's 4,600 staff are currently deployed or reside outside Australia," Mr. Renshaw said.
Following Cardno's normal strategy, TEC's key management will become Cardno shareholders and remain active in the company.
7 Mile Advisors advised TEC on the transaction.